After the early February crash that we saw on Gold and Silver, there has been some regaining of strength and momentum on silver, but right now, it’s not looking so good for the asset. What looked like a reversal 1 week ago, looks like a retracement right now.
Now, because silver is priced in US Dollar, this means that whenever the dollar struggles, silver gains, and when the dollar is doing good, silver struggles. And since the US Dollar has done nothing but struggle since the start of 2026, and is now finally seeing some good signs, it only makes sense that silver is not seeing any more bullish price action.
On the technical side, we can clearly see that silver has been creating lower lows and lower highs, no sign of any bullish momentum at all. There is a major key support level at $64.02, and if it gets broken, silver could go into free fall for the second time this year and potentially fall below $70. This move could put silver at over a 50% loss since the all-time highs in late January.
But the question is that, is this really a move that is driven by dollar strength, or is it something else? Gold hasn’t seen such bad losses, even though it has dropped as well, it is still maintaining good levels for investors and traders. Could this move be triggered by potential loss in demand for solar panels, electric vehicles and Electronics? Many countries have started making changes in their global trade policies, and that could very well have been the trigger for this major fall in silver price.
Another potential reason is overhyped silver prices. Since gold started rallying late last year, it was almost as if the entire market was bullish, we saw little to no resistance towards the bull market, and everyone was screaming online about how silver will be the best performing asset in 2026. This hype could have led many to taking over leveraged positions, and now with the price of silver dropping exponentially, those leveraged longs are getting liquidated and as a result it creates an easier market for bears to control and dump.
All of these reasons are plausible, which is why I believe that the huge crash is not due to one single factor, but rather many factors combined into one major sell off for the silver price.
(Just my opinion, not financial advice)